Nippon Steel announced on Monday the firm builds plant to make foundation material of steel pipe pile and sheet pile in Vietnam. The firm launches new joint venture in May 2011 with Vietnam Steel Corporation and Metal One Corporation and other 4 trading firms. The plant is the first construction material plant for Nippon Steel. The joint venture is to serve growing demand in local market when the demand increases for projects including infrastructure and energy industry. Nippon Steel tries to follow Asian growing demand for steel structural while the firm eyes potential production base in China.The firm got approval for the investment from Ba Ria-Vung Tau Industrial Zones Authority (BIZA). Nippon Steel controls 51% of the new company, Nippon Steel Pipe Vietnam with US$ 15 million of capital. The venture has partners with 20% share by Metal One 10% share each by VSC and 4.75% share each Sumitomo Corporation, Marubeni-Itochu Steel Inc., Hanwa Co. and Nippon Steel Trading. The aggregated investment is US$ 31 million. The joint venture starts construction in Phu My industrial park of Ba Ria-Vung Tau in October. The plant has spiral pipe making facility with monthly 5,000 tonnes of output capacity for the first phase. The venture plans to expand the capacity to 10,000 tonnes. The construction material demand increases for port facility, road, rail and power station in Vietnam. The market grows at higher pace than Japan including cement demand. The pile demand represents majority for concrete structure while the demand increases for sheet pile due to lighter weight and easier working. The venture tries to follow the major projects’ Demand for Japanese government’s Official Development Assistance (ODA) in Asia and Oceania. Japanese major trading firm also expect the sales to the new venture for steel pipe pile from companies of Japan and other countries.
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